6.1 - 6.6

Which statement about investment strategies is true?

Aggressive investment strategies involved high risk investments

which statement is not true

Diversification is when the economy becomes too spread out over a period of time

Which statement is true about mutual funds?

Growth mutual funds involve start up or newer company is in there less stable but they have the possibility of making more money in the long run, and income mutual funds involve stable companies who have been in business for a long time and are more stable but they can provide a steady stream of income

Which of these is a high risk investment?

High yield bonds and short term investments

What is the definition of diversification?

Investing in several different companies so if one fails you still have investments in other companies

Which scenario gives the best example of liquidity?

Jill finds out that her daughter, Susan, borrowed money from a friend to purchase a pair of boots. Jill is upset and tells her daughter to pay back the friend right away. Susan goes to her bank and withdraw the money from her savings account and immediately pays back the friend

Which scenario is an example of inflation?

John will need to purchase gas for his car in a couple of days. He drives by the gas station and notices the price of the gas is $3.19 per gallon. By the time he gets the gas station to purchase the gas two days later, the price of the gas is $3.39 per gallon

Which scenario gives a good example of insider training?

Mark has stock in a well-known company. Mark has a friend who works for the company in the friend tells Mark that the company's stock is going to decrease in value because some of the company leadership is under investigation for unethical practices. Mark sells his stock before the general public knows about the companies problems.

Which of these are considered to be wise investment choices?

Mutual funds, hard assets, and stocks & bonds (all of the above)

Which statement is true about savings bonds?

Only the US department of the treasury can redeem a savings bond and only the person whose name is on the bond can have it redeemed

What is the best Definition of a broker?

Persons who get paid to give financial advice about investment options and who are the go-between between the investor in the company's

Which of these is a low risk investment?

Savings bonds

Which of these is an accurate statement about preferred stock?

Stock that usually cost more money but will make money in the end if invested wisely

Which investment is most affected by inflation?

Stocks

liquidity

The amount of money that is available to you or your company at any given time that you can spend or invest

What is the best way to invest your money?

To diversify your investments

Which of these is the best statement about inflation?

When inflation increases, interest rates on your credit cards, adjustable rate mortgage is, or Carloans usually increase

What is something you should ask when considering whether to invest in a company?

Who runs the company?

Which methods are good ways to save money?

all of the above (set goals and stay healthy, record expenses and take advantage of a company's triple plays)

what is the best way to define a "liquid asset" ?

assets that you are able to quickly convert to cash

which option is not a type of savings account discussed in this lesson?

at-home savings